DoD awards $59.7M for Ellsworth AFB environmental protection shelters, with construction expected to take over two years
Contract Overview
Contract Amount: $59,713,973 ($59.7M)
Contractor: Federal Contracting Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2027-12-17
Contract Duration: 809 days
Daily Burn Rate: $73.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: B-21 EAST ALERT APRON ENVIRONMENTAL PROTECTION SHELTERS PROJECT NUMBER: FXBM253794ELLSWORTH AFB, SOUTH DAKOTA THIS SOLICITATION IS UNRESTRICTED (OPEN TO BOTH SMALL AND OTHER THAN SMALL BUSINESSES
Place of Performance
Location: RAPID CITY, PENNINGTON County, SOUTH DAKOTA, 57701
Plain-Language Summary
Department of Defense obligated $59.7 million to FEDERAL CONTRACTING INC for work described as: B-21 EAST ALERT APRON ENVIRONMENTAL PROTECTION SHELTERS PROJECT NUMBER: FXBM253794ELLSWORTH AFB, SOUTH DAKOTA THIS SOLICITATION IS UNRESTRICTED (OPEN TO BOTH SMALL AND OTHER THAN SMALL BUSINESSES Key points: 1. The contract value represents a significant investment in base infrastructure, focusing on environmental protection measures. 2. Competition dynamics for this project will be crucial in determining overall value for taxpayer dollars. 3. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor. 4. Project duration of over two years indicates a substantial construction undertaking. 5. The location in South Dakota places the project within a specific regional economic context. 6. The absence of a small business set-aside suggests a focus on capabilities rather than specific size preferences.
Value Assessment
Rating: fair
Benchmarking this contract's value requires comparison to similar construction projects for military air bases, particularly those involving specialized environmental protection structures. The firm-fixed-price nature provides cost certainty, but the final value will depend on the contractor's efficiency and management of unforeseen issues. Without detailed cost breakdowns or comparisons to industry standards for similar square footage or specialized construction, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The solicitation was conducted under full and open competition, indicating that all responsible businesses, regardless of size, were eligible to bid. This approach typically fosters a competitive environment, encouraging multiple bids and potentially leading to more favorable pricing for the government. The presence of four bidders suggests a reasonable level of interest and competition for this specific project.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government receives the best possible value for its investment.
Public Impact
The primary beneficiaries are the Department of Defense and Ellsworth Air Force Base, which will gain enhanced environmental protection capabilities. The project will deliver specialized shelters designed to mitigate environmental impacts associated with base operations. The geographic impact is localized to Ellsworth Air Force Base in South Dakota. The construction phase will likely involve a workforce of skilled tradespeople and construction professionals in the South Dakota region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
- Schedule delays could impact the operational readiness or environmental compliance timelines for the base.
- Ensuring the specialized environmental protection features meet all regulatory and operational requirements.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a competitive bidding process that should yield fair pricing.
- The project addresses critical environmental protection needs for a military installation.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically tailored for military infrastructure. The market for such specialized construction is often characterized by a limited number of firms with the requisite security clearances, experience with government contracting, and technical expertise. Comparable spending benchmarks would involve analyzing other construction projects at military installations, focusing on the cost per square foot or per specialized feature for similar environmental protection facilities.
Small Business Impact
This contract was not set aside for small businesses, as indicated by the 'ss' (small business set-aside) field being false. The solicitation was open to both small and other than small businesses. This means that while small businesses could compete, there was no specific allocation or preference for them. The implications for the small business ecosystem are that they would need to compete directly with larger firms, and there is no explicit requirement for subcontracting opportunities with small businesses unless voluntarily offered by the prime contractor.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified shelters within the agreed-upon cost and schedule. Transparency is generally maintained through contract award announcements and public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Military Base Construction
- Environmental Infrastructure Projects
- Department of Defense Facilities Management
- Air Force Base Modernization
Risk Flags
- Potential for cost overruns despite firm-fixed-price contract.
- Risk of schedule delays impacting base operations.
- Ensuring compliance with specialized environmental regulations.
- Contractor's past performance on similar complex projects.
Tags
construction, department-of-defense, ellsworth-afb, south-dakota, firm-fixed-price, full-and-open-competition, environmental-protection, commercial-and-institutional-building-construction, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.7 million to FEDERAL CONTRACTING INC. B-21 EAST ALERT APRON ENVIRONMENTAL PROTECTION SHELTERS PROJECT NUMBER: FXBM253794ELLSWORTH AFB, SOUTH DAKOTA THIS SOLICITATION IS UNRESTRICTED (OPEN TO BOTH SMALL AND OTHER THAN SMALL BUSINESSES
Who is the contractor on this award?
The obligated recipient is FEDERAL CONTRACTING INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $59.7 million.
What is the period of performance?
Start: 2025-09-29. End: 2027-12-17.
What is the track record of FEDERAL CONTRACTING INC. with similar Department of Defense construction projects?
FEDERAL CONTRACTING INC. has a history of performing various construction services, including those for government entities. To assess their track record specifically for large-scale environmental protection shelters on military bases, a detailed review of their past performance on similar Department of Defense contracts would be necessary. This would involve examining contract completion history, any past performance evaluations, and their experience with the specific types of environmental regulations and construction techniques relevant to this project. Without access to a comprehensive database of their past projects and performance metrics, it is difficult to definitively gauge their suitability and past success on projects of this magnitude and specialization.
How does the awarded price compare to industry benchmarks for similar construction projects?
A precise comparison of the $59.7 million award to industry benchmarks for similar construction projects is challenging without more detailed project specifications and cost breakdowns. Factors such as the specific environmental protection technologies required, site preparation complexities, material costs in South Dakota, and the overall scope of work significantly influence pricing. Generally, construction costs for specialized facilities on military bases can be higher than commercial projects due to stringent security, environmental, and operational requirements. Benchmarking would typically involve comparing the cost per square foot, or cost per specialized feature, against recent, comparable government or commercial construction projects in similar geographic regions, adjusted for inflation and project complexity.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential schedule delays due to unforeseen site conditions, weather, or supply chain disruptions, and potential cost overruns if the firm-fixed-price contract does not adequately account for all contingencies. Mitigation strategies are primarily embedded in the contract structure and the selection process. The firm-fixed-price nature shifts significant cost risk to the contractor. The selection of a contractor with a proven track record (which would need to be verified) and the inclusion of specific performance milestones and penalties in the contract also serve as risk mitigation. The government's oversight and quality assurance processes are crucial for monitoring progress and ensuring compliance.
How effective is the firm-fixed-price contract type in ensuring value for taxpayer money on this project?
The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for taxpayer money by providing cost certainty. Under an FFP contract, the contractor assumes the primary responsibility for cost overruns, which incentivizes them to manage the project efficiently and control expenses. This shifts the financial risk from the government to the contractor. However, the initial price must be set appropriately based on realistic cost estimates and competitive bidding to ensure it represents fair market value. If the initial price is too high due to inadequate competition or poor estimation, the FFP structure might not yield optimal value. Conversely, if the price is too low, the contractor might cut corners, impacting quality, which is another risk to value.
What is the historical spending trend for similar environmental protection construction projects at Ellsworth AFB or similar Air Force bases?
Analyzing historical spending trends for similar environmental protection construction projects at Ellsworth AFB or comparable Air Force bases would provide valuable context for this $59.7 million award. This would involve examining past contracts for environmental remediation, specialized shelter construction, or infrastructure upgrades related to environmental compliance at similar installations. Trends might reveal whether costs for such projects have been increasing, decreasing, or remaining stable, and identify common challenges or cost drivers. Understanding these historical patterns can help assess if the current award is within a reasonable range and identify potential areas for cost savings or efficiency improvements in future projects.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9128F25R0005
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5475 TECH CENTER DR, COLORADO SPRINGS, CO, 80919
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,222,924
Exercised Options: $59,713,973
Current Obligation: $59,713,973
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-29
Current End Date: 2027-12-17
Potential End Date: 2027-12-17 00:00:00
Last Modified: 2025-09-19
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